International Financial Reporting Standards are the standards, Explanations, Conceptual Structures to prepare and present the financial statements of a business even in the absence of the standards. International Financial Reporting Standards was introduced by International Accounting Standards Board (IASB).
In the absence of a standard in a business, management should be able to develop and explain about the financial information to the shareholders and managers of the business, which is called accounting policy. Management, while making decisions shall consider the applicability of
IFRS have been implemented many parts of the world which includes the Africa Australia, European Union, Gulf Cooperation Council countries, Hong Kong, Malaysia, Pakistan, and, Russia, South, Singapore and Turkey.
A Business by Using International Financial Reporting Standards (IFRS) can prepare financial statements easily by comparing its business with foreign competitors.
In United States, Most of the people believe in US General Accepted Financial Standards (GAPS) and it is successful accounting standard if International financial reporting standards (IFRS) fail economic instability may occur.